India's foreign exchange reserves fell by $47 billion in 7 weeks

Foreign Exchange: In recent times, the foreign exchange reserves of India and Pakistan have seen opposite trends. While India's foreign exchange reserves have declined steadily, Pakistan's forex reserves have increased. This situation reflects the economic conditions of both countries and can affect their economic stability at the global level. Let us know about the current status of the foreign exchange reserves of these two countries.

India's foreign exchange reserves: Continuous decline

According to the latest data released by the Reserve Bank of India (RBI), India's foreign exchange reserves have declined by $ 18 billion. This decline has been seen for the seventh consecutive week. India's foreign exchange reserves reached US $ 657.892 billion in the week ended November 15, as against $ 675.653 billion in the week ended November 8. That is, there was a decrease of $ 6.477 billion in just one week.

Earlier, India's foreign exchange reserves were at an all-time high of $ 704.885 billion at the end of September. However, it has been declining for the last several weeks, which is causing pressure on the Indian currency rupee. It is clear from this that India's foreign exchange reserves are continuously decreasing, which may be due to trade deficit, dependence on imports and fluctuations in global markets.

Gold reserve also declines

Not only has the foreign currency assets declined in India's foreign exchange reserves, but gold reserves have also seen a decline. Gold reserves fell by $ 2.068 billion to $ 65.746 billion in the week ended November 15. Along with this, India's reserve position with Special Drawing Rights (SDR) and IMF has also declined.

Increase in Pakistan's foreign exchange reserves

At the same time, this is a time of relief for Pakistan as its foreign exchange reserves have increased. Pakistan's central bank, the State Bank of Pakistan (SBP), reported that their foreign exchange reserves increased by $ 29 million in the week ended November 15. After this increase, Pakistan's total foreign exchange reserves have reached $11.3 billion.

Additionally, Pakistan's commercial banks had net foreign exchange reserves of $4.7 billion, and the total liquid foreign reserves have reached about $16 billion. Although this figure is still low for Pakistan's financial stability, the increase in it can provide some relief to the country.

Impact on currency stability of India and Pakistan

Looking at this difference in the foreign exchange reserves of India and Pakistan, it can be said that there is an imbalance in the economic condition of both the countries. The decline in reserves in India and the increase in Pakistan can affect the currency stability of both the countries. India will have to take many steps to improve the situation of reduction in its reserves, while Pakistan will have to adopt concrete policies to convert the increase in its reserves into a stable and developing situation.

Conclusion

The opposite trend in the foreign exchange reserves of India and Pakistan clearly reflects the disparities in the economic condition of the two countries. India may need to change fiscal policy and increase exports to arrest the decline in its reserves, while Pakistan faces the challenge of converting its growing reserves into stability. This situation could affect the economic direction of both these countries in the coming months.